Municipalities and metropolises across the country had accumulated a total debt of R10.8 billion and, of them, the City of Joburg’s power entity was Eskom’s biggest debtor.
In a written reply to parliamentary questions, Co-operative Governance Minister Pravin Gordhan revealed that municipalities around the country owed Eskom R10.8 billion at the end of June.
“The department is engaging with all parties concerned to find a constructive solution to the challenge,” he said in the reply.
The question was posed by Inkatha Freedom Party MP Mkhuleko Hlengwa, who described the figures as “worrisome”.
Meanwhile, Eskom indicated that it was prepared to take firm action against its debtors.
“We’re engaging with all the municipalities and I think we’ve been at the stage where if we have to take the action to disconnect customers who are not paying then we will do that,” said Eskom’s group executive for sustainability, Dr Steve Lennon.
However, Lennon was confident that Eskom would not have to resort to such measures.
“I don’t believe we’re going to get to that stage. If you look at the support that we are receiving from local level and at a national level it is very encouraging and I think we will come to a solution.”
Lennon said the power utility’s total municipal debt was roughly R11 billion, which consisted of about R8 billion current debt and R3 billion outstanding debt.
Municipalities were Eskom customers and received electricity from the power utility to municipal substations, which was then distributed to the municipality’s customers.
According to Eskom, the majority of residents and businesses in South Africa were municipal customers.
Earlier this month, the National Energy Regulator of South Africa approved financially ailing Eskom’s request to recoup R7.8 billion in costs.
The regulator’s decision would result in additional tariff increases over the 8 percent increase that the power utility had already been granted for next year.
